Demand for new cars falls to 21-year low with the number of vehicles registered in UK down by more than 4% compared to last year
- 328,041 new cars were registered in the UK in September, down 4.4% on 2019
- But sales of battery electric and plug-in hybrid cars have bucked the trend
- Experts have warned the motoring industry still faces ‘myriad challenges’
The impact of the pandemic on the economy was laid bare today as new figures show that demand for new cars fell to a 21-year low last month.
Some 328,041 new cars were registered in the UK in September, down 4.4% on the total of 343,255 during the same month in 2019, according to the Society of Motor Manufacturers and Traders (SMMT).
This was the weakest September performance since 1999 when new number plates began being issued twice per year, in March and September.
The SMMT warned that the industry faces ‘myriad challenges’ during the remainder of 2020, in the wake of what has been a ‘torrid year.’
Demand for new cars fell to a 21-year low last month, industry data has revealed today. Pictured, a Volkswagen Inchcape car dealership in Stockport, Greater Manchester
But sales of battery electric and plug-in hybrid cars bucked the trend with rises of 184.3% and 138.6% respectively.
Overall registrations during the first nine months of the year were down 33.2% compared with the same period in 2019.
As details emerged of the damage inflicted by the lockdown, SMMT chief executive Mike Hawes said the industry has suffered its worst year since 1999.
He added: ‘During a torrid year, the automotive industry has demonstrated incredible resilience, but this is not a recovery.
‘Despite the boost of a new registration plate, new model introductions and attractive offers, this is still the poorest September since the two-plate system was introduced in 1999.
‘Unless the pandemic is controlled and economy-wide consumer and business confidence rebuilt, the short-term future looks very challenging indeed.’
The SMMT warned that the industry faces more challenges, including Brexit uncertainty, the investment required to develop zero-emission capable vehicles, and the difficulty in achieving climate change targets amid stalling demand for new cars.
It expects the number of new cars registered during the year as a whole to be around 30.6% lower than in 2019, which is equivalent to £21.2 billion in lost sales.
James Fairclough, chief executive of AA Cars, said: ‘Dealerships are frantically playing catch up for the months of sales lost during lockdown.
‘Even though many have made great strides over the summer, the winter months will be decisive in determining how sustainable the momentum is.
‘Drivers’ concerns about the stability of their finances could also be pegging back demand for new cars and prompting many to look for better value on the second-hand market instead.’
This comes as traffic congestion soared in London this morning as more commuters headed back into the office – after demand for new cars fell to a 21-year low last month.
Commuters walk near London Bridge station this morning at the start of the working week
TomTom data revealed there were 527 miles of traffic jams across the capital as of 9am today with 1,340 jams in total – and congestion levels at 66 per cent.
This figure was up ten percentage points from 56 per cent at the same point last week, and up from an average of 43 per cent from the same time last year.
Last week it was revealed Britons had rejected Prime Minister Boris Johnson ‘s call to work from home with almost two thirds of employees still heading into the office.
The Office for National Statistics said 59 per cent of UK adults travelled to their workplace at some stage in the week to September 27, down from 64 per cent the previous week – the highest since records began in May.